While GM is shutting down plants and leaving many workers jobless, CEO Rick Wagoner’s base salary for 2008 went up to $2.2 million from $1.65 million in 2007. His total compensation in 2007, including base salary, stock awards, options and other income, was $14.4 million as reported by GM ($15.7 million according to Associated Press).
Shareholders are now speaking out. At yesterday’s annual meeting, shareholders blasted CEO Rick Wagoner for taking in huge salaries and bonuses while GM struggles financially. Investors defeated a proposal under which at least 75 percent of future stock option and restricted stock awards for senior execs would be tied to how GM is performing.
The proposal on performance pay came from John Lauve of Holly, Michigan. He said that GM’S market share and stock price have dropped significantly over the recent years but management and directors have not been held accountable.
“We either need to change this company or have the Japanese come in and run the whole place,” said Lauve.
We go for the second option. Hmm, we wonder what Ford shareholders think of Mullaly’s $21.7 million in 2007.
Source: Automotive News (Subscription Required)